Yes, they sell to different clientele. The Ralph Lauren/Lacoste/Calvin Klein/etc clothing that has gratuitous logos is basically a different product than their higher end products. You won't even see it sold in the same stores as the higher end clothing.

Luxury brands also frequently sacrifice a brand every few years and drop it down the "status" level, such as Michael Kors/YSL/etc, and you will start seeing low quality product with the huge labels slapped over it sold in stores like Macys where they wouldn't have been seen before.

Zara/H&M/Uniqlo are nice in that they sell non logo'd utilitarian clothing at the lowest cost (I'm a big fan).